Land

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Hello Margaret, I am currently seeking (with my partner and my parents) to purchase land and put two dwellings onto it. The land we are looking at is greater than two acres with the houses approximately 200 square meters +. we are thinking sub diving but We are unsure of how to best address this and the processes involved as so many people tell you different things. Are you please able to provide us with an insight into the best was to approach this? Kind regards,
 Ian
 
Hi Ian,
Your first port of call will be to the local governing body, the council, to find out their individual policy on subdivision.  It's useful to note here that, while all local councils subscribe to their state's planning rules, each one will have different local rules surrounding what you can and cannot subdivide.  These rules will relate to the original zoning of the block, minimum lot sizes allowed, and a  whole host of other things.  For example, in some areas, apparently residential land may actually have a rural or semi- rural zoning, and this would mean that you may not be able to further subdivide at all, while in others you may be able to make this 2 acre block into two x one acre blocks, or even more. If the current zoning allows the subdivision you are after, you can commence, if it does not then you need to seek the council's advice around your chances of having that original zoning amended to allow the subdivision you want. A frank and open discussion with the local council should give you a good idea of what the current zoning is and their attitude to the plans you have for the land. Once you know what you are allowed to do, it's my advice that you contact a local town planner for phase two. A town planner will be able to clearly advise you on whether your ideas for this subdivision will progress smoothly through council, whether you face objections which may be overcome, or whether the entire idea is so far out of what is allowed that you have no hope. It's a worthwhile expense to have this feasibility study done as it could save you not only a lot of money, but time in satisfying the lengthy progress of seeking subdivision approval, only to find that your proposal is rejected. If the planner agrees that you have a hope then they will also oversee the obtaining of the required surveys, site and engineering plans. Remember that the town planner's fees will be on top of the fees that you pay each of these independent contractors. I have found that town planners usually know the rules intimately, and many have previously worked for council, so they are in the best position to develop a proposal with the greatest chances of success. I want to point out that the costs of subdividing are rarely accurately able to be forecast - in other words, whatever you think you will pay for all of this is likely to be so far below what you will actually end up paying that you will be surprised and possibly a little stressed out by the resulting project cost. These potential costs include, but are not limited to: drainage and sewerage, connection of services, access driveways if they are needed, cutting and levelling to prepare the site for building, potential retaining walls, connection of services, drafting fees, application fees, surveys and reports, environmental studies, permit fees, council contributions... the list goes on.  You will need to fund all of these costs yourself, and it's likely that such fees cannot be included in any bank loan you plan to get for the construction. My advice is to prepare a complete list of all possible costs with the guidance of the town planner, and then add at least 20% to the bottom line. You should also include what you believe to be the total costs of building the houses - and don't go by the advertised prices of houses built by the major project home builders.  My recent experience with this saw a property with an advertised price of $290,000, which purportedly included site costs, end up at a final price of $450,000, and this did not include much in the way of upgrades to the tile allowances and basic provisions - in my opinion project home building is a total rort that you only discover after you have signed the contract. If you can get a good understanding around what the homes will cost you to build, and add this to your projections on the subdivision costs, you'll then know if all the headaches of subdividing are actually worth it in the end. Being forewarned is being forearmed, so it's well worth your time to spend a great deal of time figuring all this out before committing to the deal. Have a property question?     <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: The key to purchasing land

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EXPERT OBSERVER
Suburbs comprising of larger average land sizes are generally bucking the broader capital city housing market trend and achieving stronger value changes and milder declines over the past year compared to broader capital city markets according to CoreLogic research out today.
The analysis shows the five suburbs in each capital city with the largest average land area based on sales over the 12 months to February 2019. It also shows the median value of these suburbs and the change in median values over the year.
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One of the most noticeable from this data is the fact that for houses, the annual change across these suburbs is typically superior to that across the broader capital cities.
In Sydney, house values have fallen by -11.5% over the 12 months to February 2019. Looking at the five suburbs listed, only Kenthurst has recorded a weaker annual change.
Melbourne house values are also -11.5% lower over the past year and all of the suburbs listed have seen more moderate value falls than that across Greater Melbourne.
Brisbane house values were -0.4% lower over the past year and two of the five suburbs have seen a stronger annual change.
The 0.9% annual increase in Adelaide house values means that four of the five suburbs listed have seen stronger value growth over the past year.
Perth house values are -6.7% lower over the past year with four of the five suburbs listed recording either value increases or more moderate declines than -6.7%.
Greater Hobart house values were 6.8% higher over the past year and three of the five suburbs listed have recorded growth in excess of that.
House values in Darwin increased by 0.2% over the past year and three of the five suburbs with the largest average land sizes recorded greater value increases than that.
While Canberra house values increased by 4.1% over the past year, only two of the suburbs listed recorded growth in excess of this.
Although this data broadly shows that suburbs with larger average land sizes are holding up better in the housing downturn, many buyers value larger land sizes.
As new development increasingly moves towards higher densities and smaller lot sizes for houses, large housing lots are likely to continue to be highly desirable.
The desirability won’t be only for more space, but also where the potential for future sub-division may exist. 
CAMERON KUSHER is a property research analyst for CoreLogic.
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ckusher-ujnxiKuFQs

Give me land lots of land: CoreLogic's Cameron Kusher

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A Melbourne-based Italian family has listed their 153-hectare farm on the city's northern fringe.
It is tipped to sell to developers for more than $100 million.
The site at 750 Craigieburn Road East, is 23 kilometres north of the Melbourne CBD within the Urban Growth Zone.
It includes 97 hectares of developable area with the potential to yield 1700 residential lots.
Greenfield land prices in Melbourne have surged above $1 million a hectare in recent times highlighted when Chinese giant Country Garden purchased a 363-hectare site in Melbourne's west for a record $400 million,
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The Craigieburn site is being market by RPM Real Estate Group who calculate the median lot price for Craigieburn rose 28 per cent compared to the previous 12 months.
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j.ballantyne1990-6AQqhLzZaK

$100 million hopes for Melbourne fringe farm at Craigieburn

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ASIC has commenced proceedings in the Federal Court of Australia against companies associated with Jamie McIntyre and the 21st Century Group in relation to their promotion to investors of five land banking schemes.
<img src="/images/2015/08/10/jamiemcintyre1.png" alt="">
ASIC alleges that the schemes are unregistered managed investment schemes and that the 21st Century Group companies and Mr McIntyre have been unlawfully carrying on an unlicensed financial services business.
The five schemes are promoted and advertised as:
<ul>
<li>Botanica, located at 805 Archer Rd, Kialla, Victoria 3631</li>
<li>Secret Valley Estate, located at  955, Old Sydney Road, Bylands, Victoria 3762</li>
<li>Oak Valley Lakes Estate &amp; Resort, located at  124 Booth Road, Brookhill, Townsville, Qld 4816.</li>
<li>Bendigo Vineyard Estate &amp; Resort, located at  51 Andrews Road, Bendigo, Victoria 3551</li>
<li>Melbourne Grove Estate, located at  1491 Dohertys Road, Mount Cottrell, Victoria 3024</li>
</ul>
ASIC understands that there are over 100 investors in the schemes, which have been promoted to investors, including through seminars, by entities associated with Mr  McIntyre's 21st Century Group.
Companies associated with Mr McIntyre and the 21st Century Group are also the developers of the schemes (development companies). 
ASIC is seeking orders to appoint a provisional liquidator or receiver and manager to each of the five schemes and the development companies in order to take control of any assets and protect the interests of investors.
The development companies are:
<ul>
<li>Archery Road Pty Ltd (ACN 162 921 735)</li>
<li>Bendigo Vineyard Estate Pty Ltd (ACN 600 088 211)</li>
<li>Secret Valley Estate Pty Ltd (ACN 602 817 532)</li>
<li>Kingsway South Holdings Pty Ltd (ACN 159 230 976)</li>
<li>Melbourne Tarniet Estate Pty Ltd (ACN 603 945 393)</li>
</ul>
ASIC is also taking action against the development companies and the following for being involved in an unlicensed financial services business.
<ul>
<li>Mr Jamie Neville McIntyre (Surfers Paradise Qld)</li>
<li>Mr Dennis McIntyre (Surfers Paradise Qld)</li>
<li>Property Tuition Pty Ltd (ACN 129 421 281)</li>
<li>Education Holdings Pty Ltd (ACN 129 551 917)</li>
<li>Sourcing Property Pty Ltd (ACN 602 474 779)</li>
</ul>
ASIC is also seeking orders that each of the defendants, including Mr McIntyre, be restrained from promoting, further promoting or operating any of the schemes and from operating a financial services business.
The matter is set down for a first hearing on Friday 14 August 2015.
ASIC’s proceedings are part of ASIC's wider and ongoing investigation into land banking schemes. 
ASIC last week took proceedings against Midland HWY, which was the developer of a land banking scheme known as, 'Hermitage Bendigo' (formerly, 'Acacia Banks')  located  outside of Bendigo in Victoria.  The 21st Century Group also promoted this development.
Land banking is a real estate investment scheme involving the acquisition of large blocks of land by a promoter or developer of the scheme, often in undeveloped rural areas, who then offer portions of the land to investors. 
Land banking companies typically promote the investment with representations of high potential returns if the land is redeveloped, or if plans for rezoning and development are finalised.
Investors either purchase a lot in the land, or acquire an option to purchase a lot of land in an unregistered plan of subdivision.  The option agreement is triggered at a time that the necessary development is approved by the local council.
While ASIC does not regulate direct property investment, ASIC considers that land banking schemes, depending on the particular scheme, may be a managed investment scheme and/or a financial product and that the promoters of these schemes should therefore hold an Australian financial services licence and register these schemes with ASIC.
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jchancellor-FAypfDUnLy

Land banking Jamie McIntyre's 21st Century Group facing ASIC proceedings

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GUEST OBSERVATION
Property remains sought after in Melbourne’s inner eastern suburbs with school catchment zones, parks and local amenities offering the ultimate combination for a quality family lifestyle. Whilst eye-catching architecture and leafy tree-lined streets are a major drawcard in the inner eastern suburb of Balwyn, its land value that takes top priority.
There are numerous reasons why land is a desired asset in Balwyn. Families want to move into the area to be within school zones –despite the fact that the area is home to traditional, older properties. In fact, some, buyers are prepared to pay more for land and simply knock down the house and build their ideal home. A-grade land in Balwyn is fetching roughly $3000 per square metre as evidenced by a recent sale at Henley St. This particular block of land measured approximately 817 square metres and sold at auction for an astounding $2.65 million. Clearly, a clean slate on which families can build their dream home is an attractive proposition.
Another trend in the inner east is the high turnover of homes. We’ve noticed downsizers are looking to cash in on their property now while the market is positive, which means an increase in stock. As expected, the area remains attractive for young parents who wish to send their children to Balwyn High School, a public school with a fantastic reputation. Demand for Balwyn High has grown even more in recent years, as the costs of sending a child to a private school has grown. For families, the freedom to choose where their children are educated appears to be a major factor behind their final purchasing decision.
Just next door to Balwyn, Balwyn North is currently flourishing, with clearance rates sitting at 86.4%, above the 76.2% state-average (REIV). The median house price has increased by $300,000 in Balwyn North over the past six months and the suburb recently joined the million dollar list. The area’s popularity can in part be put down to the fact that Balwyn North has traditionally been more affordable than surrounding suburbs like Kew. It also sits on the edge of the freeway, has the 48 tram, several primary schools and is in the desirable Balwyn High School Zone. As buyers realise the suburb’s potential and property prices increase, some families are going to need to look elsewhere if they want to move to the inner east.
There are several hot spots in Melbourne’s inner east where young couples and families can still find good value properties, such as Kew East and Mont Albert North.  The latter has a median house price of $1.140 million, making it one of the lowest in the area. Mont Albert North is also close to primary schools, transport and Box Hill shopping precinct. To add, Kew East is right next door to Balwyn North and is serviced by freeways, bike paths and is close to the CBD. hockingstuart research shows there are more than 125 streets with renovation potential in Kew East too, so it’s a top spot for buyers who are prepared to do some work to create their dream property.
As demand for top schooling remains strong and interest rates remain low, families will continue to look for land in Melbourne’s inner east. But buyers, especially young professionals, should consider the suburbs that surround hot suburbs like Balwyn can still provide excellent value for money, as well as a long-term home for the next twenty years.
Toby Parker is Director,<a href="https://www.hockingstuart.com.au/?four04=true&amp;missing=/office/index.cfm&amp;pagecall=staffMember&amp;staffID=88125&amp;CFID=341705687&amp;CFTOKEN=35728253&amp;jsessionid=8430ce095d307f0a1eb61e20216d35101119"> hockingstuart Balwyn</a>.<a href="https://mail.privatemedia.com.au/owa/redir.aspx?SURL=d7uL3H3aEYHjuWTZ-HoMDc8L5D_09g_wKrD5oRp5FpW1ZbgAfHDSCGgAdAB0AHAAOgAvAC8AdwB3AHcALgBoAG8AYwBrAGkAbgBnAHMAdAB1AGEAcgB0AC4AYwBvAG0ALgBhAHUALwA_AGYAbwB1AHIAMAA0AD0AdAByAHUAZQAmAG0AaQBzAHMAaQBuAGcAPQAvAG8AZgBmAGkAYwBlAC8AaQBuAGQAZQB4AC4AYwBmAG0AJgBwAGEAZwBlAGMAYQBsAGwAPQBzAHQAYQBmAGYATQBlAG0AYgBlAHIAJgBzAHQAYQBmAGYASQBEAD0AOAA4ADEAMgA1ACYAQwBGAEkARAA9ADMANAAxADcAMAA1ADYAOAA3ACYAQwBGAFQATwBLAEUATgA9ADMANQA3ADIAOAAyADUAMwAmAGoAcwBlAHMAcwBpAG8AbgBpAGQAPQA4ADQAMwAwAGMAZQAwADkANQBkADMAMAA3AGYAMABhADEAZQBiADYAMQBlADIAMAAyADEANgBkADMANQAxADAAMQAxADEAOQA.&amp;URL=http%3a%2f%2fwww.hockingstuart.com.au%2f%3ffour04%3dtrue%26missing%3d%2foffice%2findex.cfm%26pagecall%3dstaffMember%26staffID%3d88125%26CFID%3d341705687%26CFTOKEN%3d35728253%26jsessionid%3d8430ce095d307f0a1eb61e20216d35101119" target="_blank"> </a><a name="_GoBack" href=""></a>
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Land fetching a high price in Melbourne’s inner east: hockingstuart Balwyn

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The new Masterplanned community Valley Park was launched yesterday by Australand, City of Hume mayor Casey Nunn and the Victorian Minister for Housing, Wendy Lovell.
The new <a href="https://www.australand.com.au/Our-Properties/Apartments-Homes/Jumpin-Valley-Park" target="_blank">Valley Park</a> development in Westmeadows will provide new homes, with the entire final development valued at approximately $160 million. It is a partnership between Australand and the Victorian Government, with the state government providing $56 million.
“With the establishment of brand new, quality housing, this development will provide further opportunities for locals in Westmeadows and nearby suburbs,” said Lovell.
“The Napthine Government invested $56 million in the Valley Park redevelopment, which will help provide 354 high-quality homes as part of our focus on supporting vulnerable people, while also creating a more diverse community in Westmeadows,” she said.
Australand general manager Rob Pradolin said that the key objective is to use the multi-use centre to get residents to interact and meet each other.
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“The Napthine Government invested $56 million in the Valley Park redevelopment" - Victorian Minister for Housing
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Construction is currently underway, with 320 lots expected on completion. Previously, it was announced that 110 social housing properties and 34 independent living units as part of an aged care precinct, as well as a 120 bed aged care home from Baptcare, would be built. Parklands and community facilities will be included.
The first houses are expected to settle from this month onwards.
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